Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase in stock price of over 20% compared to the benchmark index within six months [10][16]. Core Insights - The company reported a revenue of 1.909 billion yuan for 2024, a year-on-year increase of 1.57%, but a decrease in net profit attributable to shareholders by 10.55% to 255 million yuan [4][5]. - The first quarter of 2025 showed a significant revenue increase of 37.21% to 380 million yuan, although net profit decreased by 3.95% [4]. - The company is experiencing a shift in product performance, with a decline in revenue from consumer products but a rapid increase in commercial products, which grew by 72.76% [5]. Financial Performance Summary - In 2024, the revenue breakdown by product category showed consumer products at 1.341 billion yuan (down 6.48%), commercial products at 206 million yuan (up 72.76%), industrial products at 278 million yuan (up 10.22%), and accessories at 45 million yuan (up 34.63%) [5]. - The gross margin decreased by 2.29 percentage points to 29.68%, with specific declines in consumer and commercial product margins [5]. - The company expects revenues of 2.180 billion, 2.447 billion, and 2.727 billion yuan for 2025, 2026, and 2027 respectively, with corresponding growth rates of 14.22%, 12.26%, and 11.42% [10][12]. Market Trends and Opportunities - The heat pump industry is stabilizing, with the company planning to increase investment in Europe to capitalize on the recovery of the market [6]. - The liquid cooling temperature control sector is identified as a new growth point, with the company’s liquid cooling shield pump showing significant advantages in safety and noise reduction [7]. - The liquid cooling business achieved approximately 90 million yuan in revenue in 2024, marking an over 80% increase [7]. Earnings Forecast and Valuation - The forecast for net profit attributable to shareholders for 2025, 2026, and 2027 is 257 million, 305 million, and 361 million yuan respectively, with growth rates of 0.70%, 18.82%, and 18.12% [10][12]. - The price-to-earnings (P/E) ratio is projected to decrease from 14.48 in 2025 to 10.32 in 2027, indicating a potentially attractive valuation [10][12].

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints of the Report - The company is confident in achieving stable revenue growth and boosting profit levels in a stable downstream market environment [27]. - The pump industry is expected to have a stable development trend, and the company, with a comprehensive product line, will benefit from it [28]. - The European heat pump industry has shown signs of recovery, and the company will increase its investment in Europe to seize the opportunity [33]. 3. Summary by Relevant Catalogs 3.1. Research Basic Situation - Research object: Dayuan Pump Industry [17]. - Industry: General equipment [17]. - Reception time: May 15, 2025 [17]. - Reception personnel: Company General Manager Wang Lvjun, Company Board Secretary Huang Linxiang, Company Financial Controller Ye Chenchen, and Company Independent Director Lan Caiyou [17]. 3.2. Detailed Research Institutions - Reception object: All investors [20]. - Reception object type: Others [20]. 3.3. Research Institution Proportion No information provided. 3.4. Main Content Information - **Future Capital Expenditure Plans**: - The capital expenditure of the Wenling new factory is nearing completion, with only small - scale long - term expenditures remaining [24]. - The Hefei new factory still needs about 100 million yuan in subsequent expenditures and will be transferred to fixed assets in late 2025 or 2026 depending on the relocation [24]. - The Thai production capacity construction plan is currently planned to cost 30 million US dollars, with funds sourced from the company's own or self - raised funds. The construction progress depends on government approvals and market conditions [25]. - These capital expenditures have been comprehensively evaluated, and the company's self - owned funds can cover them without affecting normal operations. The company will balance business development and dividend stability [25]. - **Enterprise Governance and Management Structure**: - The company's directors are responsible for major decision - making. In actual operations, the general managers or principals of four business segments (agricultural pumps, household shielded pumps, and Reike commercial pumps) are professional managers, accounting for nearly 80% of the 2024 revenue. The company will continue to strengthen the professional manager system [26]. - **Business Performance and Outlook**: - In 2024, the company achieved an operating income of approximately 1.909 billion yuan, a year - on - year increase of 1.57%, and a net profit attributable to the parent of approximately 255 million yuan, a year - on - year decrease of 10.55%. In the first quarter of 2025, the operating income was about 380 million yuan, a year - on - year increase of 37.21%, and the net profit attributable to the parent was about 39 million yuan, a year - on - year decrease of 3.95% [31]. - In the first quarter of 2025, the company's overall operating income increased rapidly due to the recovery of the agricultural pump business, the significant year - on - year growth of the liquid - cooling temperature control business and the Reike commercial pump business [29]. - The decrease in net profit in the first quarter of 2025 was mainly due to factors such as the increase in the proportion of new and low - gross - margin businesses, and the increase in R & D investment and amortization and depreciation expenses of fundraising projects. However, as the business matures, the profit level is expected to improve [29]. - **Business Development Strategies**: - For civil products, the company will promote product upgrades to increase market share; for commercial products, it will accelerate product technology iteration and expand new business; for industrial products, it will seize the opportunity of domestic substitution and expand product layout [32]. - The company is integrating and promoting all - category liquid - cooling products, with market and product development as strategic priorities in 2025, and the development of key downstream benchmark customers as an urgent task [33]. - The company injected the stainless - steel pump business into the "Reike" brand in 2022 to improve market share and visibility. In 2024, it acquired an additional 20% of the minority shareholder's equity to promote business development, and the business has grown rapidly on a low base in the past two years [33][34].